Empirical Study Of Household Financial Asset Allocation Based On Multi-objective Portfolio Theory

Since the reform and opening up, the rapid development of Chinese economy,constantly refresh the various economic growth indicators. Meanwhile economicdevelopment, our residents are constantly accumulating wealth, the accumulation ofwealth makes residents have more financial sense. As we all know, if the assets do notmove in your hand, with the development of society, inflation will make it cheaper. Andhow to preserve wealth, ensuring wealth preservation and appreciation, is the source ofwealth consciousness. In order to adapt to China's economic development, China'sfinancial markets are constantly evolving the same. Stocks, bonds, and other financialproducts from scratch, people are no longer satisfied with the interest income from bankdeposits, a growing number of wealthy families began to focus on funds, stocks, bondsand other financial products. In order to achieve value preservation of assets,households have begun to focus on financial investments diversified financial assets.But most families are lack of professional financial knowledge, too conservative entireinvestment in bank deposits, or aggressive investment in the stock market mostly, theasset allocation structure are both irrational. Therefore, it is necessary to make aresearch on household wealth.Research on family finances, there are a lot of literature to make a study fromdifferent directions. Consumer demand theory, life-cycle theory, portfolio theory are theresult of previous efforts. After study these theoretical, found that family wealth ismainly dedicated to solve two major problems, one is increasing the value of assets, thesecond is how to plan assets so as to satisfy the different needs of the various stages inthe family life, these two issues will eventually through different asset configurationoptions to address.This paper analyzes the current situation of household financial investment, collectdata, calculate the total amount, incremental of financial assets and financialinterrelations ratio. The overall amount of the financial asset growth illustrates theinvestment scale of the financial market continues to expand. Incremental changes inthe structure of household financial asset allocation instructions tend to diversify, butthere are still too much risk-free asset allocation, risk assets in large proportion of equityinvestments and other issues. Increasing the rate of financial interrelations ratioinstructions households deeper involvement in the financial markets, more and moreinvolved in the financial market investments. While China's financial market continuesto improve, the invest channels still too narrow, underground financial market is stillwidely present is a good proof.After analyzing the financial status of the family residents, this paper use multi-objective portfolio theory to solve the asset allocation. Multi-objective portfoliotheory refers to the portfolio theory contains two or more goals. Based on themean-variance model coefficients to join a market optimism to build a new portfoliosmodel, investors can accord their own judgment of the market to make investmentdecisions of asset allocation. This paper calculated the investment strategies in ninecases, which include three types of investors and three different market expectationsjudgment. This paper also gives some related recommendations, which make familyfinancial investors be able and willing to hold diversified financial assets...